Pricol Ltd. · NSE:PRICOLLTD

Pricol — Shareholder Meeting (August 2018)

48 slides from Pricol's shareholder meeting presentation, Aug 22, 2018

  1. Slide 1: Welcome to Pricol Limited's 7th Annual General Meeting

    Welcome to Pricol Limited’s th 7 Annual General Meeting 22 August 2018 Slide 1

  2. Slide 2: Agenda

    Agenda Financial Performance FY 2017-18 New Business Wins Company Outlook FY 2018-19 Key Investments & New Plants Key Partnerships Corporate Social Responsibility Slide 2

  3. Slide 3: Financial Performance FY 2017-18

    Financial Performance FY 2017-18 Slide 3

  4. Slide 4: Standalone Financial Performance FY 17-18: Operations

    Standalone Financial Performance FY 17-18: Operations  Pricol’s standalone revenue from operations grew by 14% (excluding Speed Limiting Devices) and stood at INR 1176.71 crores in FY 17-18  Reduction in Sales and EBITDA is mainly due to drop in Speed Limiting Devices; a high profit product due to

  5. Slide 5: Standalone Financial Performance FY 17-18: Total Revenue

    Standalone Financial Performance FY 17-18: Total Revenue  Total reported revenue stood at INR 1351.23 crores in FY 17-18 and it includes the following:  Sale of land held as stock in trade to the tune of INR 83.76 crores  Sale of traded goods to the tune of INR 56.79 crores  Other income is to t

  6. Slide 6: Standalone Vehicle Segment Wise Growth FY 17-18

    Standalone Vehicle Segment Wise Growth FY 17-18 Segment Pricol’s Growth1 Market Growth2 Two Wheeler 15% 16% Commercial Vehicle 39% 10% Off Road Vehicle 13% 13% Tractor 14% 22% Four Wheeler -5% 5% 1. Growth rate is based on sales to OEMs but not including Exports, SLD, Components, Tools, Aftermarket,

  7. Slide 7: Standalone Revenue Split by Product Vertical

    Standalone Revenue Split by Product Vertical (In INR crores) Segment FY 17-18 FY 16-17 Growth % Driver Information System 570.0 509.6 12% Switches and Sensors 149.9 132.9 13% Pumps and Mechanical 345.8 318.0 9% Products Asset Management Solutions 29.7 25.7 16% Auto Accessories & Others 65.1 29.8 118

  8. Slide 8: Pricol Do Brasil – Restructuring Process

    Pricol Do Brasil – Restructuring Process  Company shifted its manufacturing facility from Diadema to Jarinu to reduce employee and operational cost and started production and supplies to the customer in Nov 2017  PdB has severed 181 employees from Aug 2017 to Mar 2018 and hired 125 employee from J

  9. Slide 9: Pricol Do Brasil – Financial Performance FY 17-18

    Pricol Do Brasil – Financial Performance FY 17-18 (In INR crores) FY 18-19 FY 18-19 Particulars FY 17-18 FY 16-17 (Q1) ABP (Q1) Actual Revenue 127.81 123.38 37.48 36.21 -Domestic 107.92 111.56 29.88 21.70 -Exports 19.89 11.82 7.61 14.51 EBITDA (26.86) (31.30) 0.29 0.92 % of Revenue -21.0% -25.37% 0.

  10. Slide 10: Pricol Indonesia – Financial Performance FY 17-18

    Pricol Indonesia – Financial Performance FY 17-18 (In INR crores) Particulars FY 17-18 FY 16-17 Revenue 40.44 92.24 Profit before Tax 2.69 0.98 % of Revenue 6.65% 1.06%  Phasing out of Honda vehicle model was a major contribution for sales decrease  Cost control measures improved the profitability

  11. Slide 11: Pricol Wiping Systems Financial Performance FY 17-18

    Pricol Wiping Systems Financial Performance FY 17-18 (In INR crores) Sep 2017 to Mar Particulars 2018 Revenue 227.82 EBITDA (0.83) % of Revenue -0.36 %  Pricol completed acquisition of wiping systems business from PMP Auto Components in August 2017  Financial reporting is considered for the period

  12. Slide 12: Consolidated Financial Performance FY 2017-18

    Consolidated Financial Performance FY 2017-18  Pricol’s consolidated revenue from operations grew by 10.23% and stood at INR 1568.6 crores in FY 17-18  Cash generation is INR 58.47 crores in FY 17-18 as against INR 78.46 crores in FY 16-17 (In INR crores) Particulars FY 17-18 FY 16-17 Revenue from

  13. Slide 13: New Business Wins

    New Business Wins PRICOL LIMITED Passion to Excel

  14. Slide 14: New Business Wins

    New Business Wins Product : First ever scooter with Bluetooth Connectivity In India Customer : TVS Motors Limited Model : NTORQ Market : India Product : Digital Cluster Customer : Hero Motors Limited Model : Passion - Xpro Market : India Slide 14

  15. Slide 15: New Business Wins

    New Business Wins Product : LCD Cluster Customer : Bajaj Auto Limited Model : Discover 110 Market : India Product : Instrument Cluster Customer : KTM Model : Husqvarna Market : India & Austria Slide 15

  16. Slide 16: New Business Wins

    New Business Wins Product : Digital Cluster with Tyre Pressure Monitoring System Customer : Tata Motors Limited Model : Xenon Market : India Product : Cluster for Tata Motors’ EV through Jayem Automotive Customer : Jayem Automotive Private Ltd Model : Electric Vehicle (EV) - Car Market : India Slide

  17. Slide 17: New Business Wins

    New Business Wins Product : Water Pump Customer : Caterpillar Model : Engine variants Market : USA Product : Oil Pump Customer : Harley Davidson Model : Motorcycle variants Market : USA Slide 17

  18. Slide 18: New Business Wins

    New Business Wins Product : Water Pump Customer : Volkswagen Model : EA 211 EVO Market : North America Product : Water Pump CSS Prime Customer : General Motors Model : CSS Prime Engine Market : South America Slide 18

  19. Slide 19: New Business Wins

    New Business Wins Product : Water Pump CSS Prime Customer : General Motors Model : CSS Prime Engine Market : South America Product : Wide range of warning clusters Customer : JCB India Limited Model : Mini Excavator, 3CX Compact Market : United Kingdom Slide 19

  20. Slide 20: New Business Wins

    New Business Wins Product : Re-configurable, Scalable, Effective and Efficient TFT Clusters Customer : JCB India Limited Model : Excavator, Compactor, Wheel Loader Market : India New Technology Products for JCB India Low Cost Telematics Speed Sensor Fuel Level Sensor Warning Cluster Solution Non Fue

  21. Slide 21: Company Outlook FY 2018-19

    Company Outlook FY 2018-19 Slide 21

  22. Slide 22: Standalone Outlook for FY 2018-19

    Standalone Outlook for FY 2018-19  Business is expected to grow by 15% to 18% due to both organic growth and new projects  New products in pipeline will contribute an expected revenue of around INR 180 crores across all product verticals.  Capex heavy for growth as investments are made in new pla

  23. Slide 23: Standalone Outlook for FY 2018-19

    Standalone Outlook for FY 2018-19  Increase in Raw Material Costs due to the following:  Rupee weakening and commodity price increase  Global electronic shortage for key components leading to a 30% price increase of such components  Main impact of the material cost increase is realized in Q1 & Q

  24. Slide 24: Standalone Revenue Split by Product Verticals

    Standalone Revenue Split by Product Verticals (In INR crores) FY 18-19 FY 17-18 Segment Growth % Plan Actuals Driver Information System 674.3 570.0 18% Switches and Sensors 170.0 149.9 13% Pumps and Mechanical 403.9 345.8 17% Products Asset Management Solutions 41.5 29.7 40% Auto Accessories & Other

  25. Slide 25: Subsidiaries Financial Outlook FY 18-19

    Subsidiaries Financial Outlook FY 18-19 (In INR crores) Pricol Wiping Systems PT Pricol Surya Particulars Pricol do Brasil (Czech, Mexico & Indonesia India) Revenue 155 – 160 35 - 40 440 - 450 EBITDA 4.5 – 5 % 8% 5-6 % Slide 25

  26. Slide 26: Pricol Do Brasil – Future Outlook

    Pricol Do Brasil – Future Outlook  CSS prime project is a major milestone for the company with expected annual revenues of INR 90 crores (BRL 45 MN) and a forecasted production ramp up from April 2019.  Water Pump program in collaboration with Pricol Wiping Systems Mexico for VW Mexico Eco engine

  27. Slide 27: Pricol Indonesia – Future Outlook

    Pricol Indonesia – Future Outlook  The Government of Indonesia is coming up with a project for a low cost vehicle model aimed at the middle class and village segments of Indonesia.  PT. Pricol Surya Indonesia has been chosen for the supply of instrument cluster and wiring harness for this low cost

  28. Slide 28: Pricol Wiping Systems – Acquisition Highlights

    Pricol Wiping Systems – Acquisition Highlights  Pricol completed acquisition of wiping systems business from PMP Auto Components in August 2017  The acquisition of the Czech Wiping Systems business Pricol Espana S.L viz., PMP PAL International (PAL Intl.) was completed through its investment subsi

  29. Slide 29: Pricol Wiping Systems – Post Acquisition Improvements

    Pricol Wiping Systems – Post Acquisition Improvements Supply Chain Improvements  Resourcing efforts to exponentially reduce quality/delivery issues being undertaken in Czech after receiving customer approvals  Resourcing for bottleneck suppliers completed in India and the same has started to posit

  30. Slide 30: Pricol Wiping Systems Future Outlook

    Pricol Wiping Systems Future Outlook  New technology development for Four Pole Motor and Reversible Motor in collaboration with ZSI Technology, Germany  Czech  Start of Production for the Audi’s new programme in Q1 2018  Additional volumes won from Volkswagen and Seat  India  Initiated Start o

  31. Slide 31: Key Investments & New Plants

    Key Investments & New Plants Slide 31

  32. Slide 32: Capex Investment in FY 17-18

    Capex Investment in FY 17-18  Consolidated capex investment in FY 17-18 is around INR 141 crores. (In INR crores) Particulars FY 17-18 Building & Infrastructure 28.63 Plant & Machinery 42.20 Others* 12.76 Tooling 18.47 Standalone Total Capex 102.06 *Others include test lab and quality lab equipment

  33. Slide 33: Planned Capex Investment in FY 18-19

    Planned Capex Investment in FY 18-19  Consolidated planned capex investment for new plants and machineries is around INR 225 crores in FY 18-19 to support new projects and capacity expansion (In INR crores) FY 18-19 Particulars Plan Building & Infrastructure 51.20 Plant & Machinery 80.20 Others* 13

  34. Slide 34: New Plant – Manesar, Haryana (Plant 9)

    New Plant – Manesar, Haryana (Plant 9) 98,000 sq ft of area and fully operational by Aug 2018 First invoicing completed in June 2018 2nd Manufacturing unit in Manesar 9th Manufacturing unit in India Investment ~ INR 7.5 crores Slide 34

  35. Slide 35: New Plant – Sricity, Andhra Pradesh (Plant 10)

    New Plant – Sricity, Andhra Pradesh (Plant 10) 5.86 acres of land with building area of 48,000 sq ft in Phase I Expected to be fully operational by Oct 2018 10th Manufacturing plant in India for Pricol Greenfield Manufacturing plant 250kw rooftop solar Investment ~ INR 32 crores Slide 35

  36. Slide 36: New Plant – Hosur, Tamilnadu (Plant 11)

    New Plant – Hosur, Tamilnadu (Plant 11) 5.55 acres of land with building area of 51,000 sq ft in Phase I Expected to be fully operational by Nov/Dec 2018 11th Manufacturing plant in India for Pricol Greenfield Manufacturing plant 250kw rooftop solar Investment ~ INR 42 crores Slide 36

  37. Slide 37: Key Investments FY 17-18

    Key Investments FY 17-18 Oxygen Sensor Assembly Line 2nd SMD line for PCB in Plant 2 Slide 37

  38. Slide 38: Key Investments FY 17-18

    Key Investments FY 17-18 No Fault Forward Assembly Line for Electronic DIS No Fault Forward Assembly Line for Mechanical DIS Slide 38

  39. Slide 39: Key Investments FY 17-18

    Key Investments FY 17-18 Fuel Pump Module Assembly Line in Plant 2 Semi-Automatic Four Stroke Oil Pump Assembly Line in Plant 3 for Ashok Leyland Slide 39

  40. Slide 40: Key Investments FY 17-18

    Key Investments FY 17-18 Water Pump Assembly Line in Plant 3 for Harley Davidson Oil Pump Assembly Line in Plant 3 for Royal Enfield Slide 40

  41. Slide 41: Key Investments FY 17-18

    Key Investments FY 17-18 Endurance test facilities in Plant 1 840T Die Casting Machine in Pricol do Brasil Slide 41

  42. Slide 42: Key Partnerships

    Key Partnerships PRICOL LIMITED Passion to Excel

  43. Slide 43: Licensing Agreement for Oxygen Sensors

    Licensing Agreement for Oxygen Sensors  Exclusive licensing agreement signed with Kerdea Technologies for Oxygen (O2) Sensor on July 2017. To expand our sensor portfolio in line with the upcoming Bharat Standard BS-VI Emission Regulations by 2020.  Post the rollout of BS-VI norms, Pricol is expect

  44. Slide 44: Technical Collaboration for Fuel Pump Modules

    Technical Collaboration for Fuel Pump Modules  Exclusive agreement signed with Wenzhou Huirun Electrical Machinery Co., Ltd (ACHR) on Oct 2017 for technical collaboration, supply and production of Fuel Pump and Fuel Pump Modules in India in line with the upcoming Bharat Standard BS-VI Emission Regu

  45. Slide 45: Partnership for Electric Water Pumps

    Partnership for Electric Water Pumps  Exclusive partnership agreement signed with Dongguan Shenpeng Electronics Co Ltd on Jan 2018 to introduce electric water pumps in Indian market across all vehicle segments  Program Status  Products under development for customers like Ashok Leyland, Volvo Eic

  46. Slide 46: Corporate Social Responsibility

    Corporate Social Responsibility Slide 46

  47. Slide 47: Corporate Social Responsibility

    Corporate Social Responsibility INR 5 lakhs donated to Sankara Eye Hospital Health Eye Camps for 6480 Government school students and 210 public members and medical camp for 223 public members 5000 tree plantation drive Environment Donations to wildlife SOS and Siruthuli Smart classrooms, renovation

  48. Slide 48: Slide 48

    > PASSIONATE > SUSTAINABLE > oynamic > EVoLvine —LLLIlIlIEEEoaoaoaoaoaEoEoE>EFEF°LEEL™=’™“=]OSaaaBpaBN=S== = Passion to Excel ¥X<pricol PRICOL LIMITED Slide 48

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